Legislation Details
- Full Title: Cabinet Resolution Regarding Refunding Bank and Financial Guarantees Given to the Ministry of Human Resources and Emiratization
- Law Type: Cabinet Resolution
- Law Number: No. (22) of 2020
- Issued Date: 31 Mar 2020
- Effective Date: 01 Apr 2020
- Official Gazette: No. 676
- Sector: Finance and Banking
- Status: Active
- Number of Articles: 6
- Chapters/Parts: 0
- Amendments: 0
Summary
This Cabinet Resolution regulates the refunding of bank and financial guarantees provided to the UAE Ministry of Human Resources and Emiratization (MOHRE). It requires MOHRE to refund 50% of the value of such guarantees to the entities that provided them, in coordination with the UAE Ministry of Finance and the Central Bank of the UAE. This resolution aims to provide financial relief to businesses and individuals who had provided these guarantees to MOHRE, which are typically required for various employment and labor-related transactions. The refunding of these guarantees is expected to improve cash flow and liquidity for affected parties during the current economic climate. (Cabinet Resolution Regarding Refunding Bank and Financial Guarantees Given to the Ministry of Human Resources and Emiratization, 2020)
What is the scope and purpose of this law?
The scope of this Cabinet Resolution is limited to the refunding of bank and financial guarantees provided to the UAE Ministry of Human Resources and Emiratization (MOHRE). It applies to any entities or individuals who had provided such guarantees to MOHRE prior to the issuance of this Resolution. The purpose is to provide financial relief to these parties by requiring MOHRE to refund 50% of the value of the guarantees. (Cabinet Resolution Regarding Refunding Bank and Financial Guarantees Given to the Ministry of Human Resources and Emiratization, 2020, Art. 2)
What are the key definitions under this law?
The Resolution provides the following key definitions:
- The State: United Arab Emirates
- The Ministry: Ministry of Human Resources and Emiratization
- The Central Bank: The Central Bank of the UAE
- (Cabinet Resolution Regarding Refunding Bank and Financial Guarantees Given to the Ministry of Human Resources and Emiratization, 2020, Art. 1)
What are the main obligations and requirements?
The main obligation imposed by this Resolution is on the Ministry of Human Resources and Emiratization (MOHRE). Article 2 requires MOHRE to refund 50% of the value of the banking and financial guarantees provided to it, to those who provided them. This refunding must be done in accordance with the procedures and rules regulating this matter, in coordination with the Ministry of Finance and the Central Bank of the UAE. (Cabinet Resolution Regarding Refunding Bank and Financial Guarantees Given to the Ministry of Human Resources and Emiratization, 2020, Art. 2)
When did this law come into effect?
According to Article 3, this Cabinet Resolution shall be published in the Official Gazette and shall enter into force as of 1 April 2020. (Cabinet Resolution Regarding Refunding Bank and Financial Guarantees Given to the Ministry of Human Resources and Emiratization, 2020, Art. 3)
Source Documents
This article analyses Cabinet Resolution Regarding Refunding Bank and Financial Guarantees Given to the Ministry of Human Resources and Emiratization for legal research and educational purposes. For the purpose of interpretation and application, reference must be made to the original Arabic text. In case of conflict, the Arabic text prevails. This does not constitute legal advice.